MOSL: PETRONET LNG (Buy)-Tellurian in PLNG’s portfolio – a non-bidding agreement
PETRONET LNG: Tellurian in PLNG’s portfolio – a non-bidding agreement
(PLNG IN, Mkt Cap USD5.3b, CMP INR253, TP INR336, 33% Upside, Buy)
Petronet LNG (PLNG) arranged a conference call to allay investor concerns about the recently signed MOU with Tellurian, US.
- PLNG signed a non-bidding agreement with Tellurian in the US on 21st Sep'19, which envisages an LNG purchase contract of up to 5mmt.
- The phase-I (16.6mmt) of the project is expected to be completed by 2023, and PLNG might invest ~USD2.5b for ~18% stake in the project.
- The contract is on behalf of PLNG or its affiliates, which can directly participate in equity investment too.
- The company reiterated that it would enter into a definitive contract only if it gets back-to-back customers, either from its promoters or other buyers.
- In the absence of any participation from the affiliates, PLNG might contract for 1-2mmt of LNG and limit its investment to ~USD0.5-1.0bn (company has cash of ~USD0.5b as of end-FY19).
Petronet LNG develops, designs, constructs, owns and operates Liquefied Natural Gas (LNG) import and regasification terminals in India. Co. operates through the natural gas business segment. Co.'s terminals include Dahej LNG terminal, Kochi LNG terminal and Solid cargo port. Co. owns and operates a LNG regasification terminal with name plate capacity of 10 MMTPA at Dahej, in the State of Gujarat. Co. also has commissioned another LNG terminal with name plate capacity of 5 MMTPA at Kochi, in the State of Kerala. Solid Cargo Port Terminal has facilities to import/export bulk products, such as coal, steel and fertilizer.
Motilal Oswal Financial Services Ltd. is a reputed name in Financial Services and Online Trading with group companies providing services such as Private Wealth Management, Retail Broking and Distribution, Institutional Broking, Asset Management, Investment Banking, Private Equity, Commodity Broking, Currency Broking, Principal Strategies & Home Finance.
Motilal Oswal Securities is a group company of Motilal Oswal Financial Service Limited which started as a stock trading company and has blossomed into well diversified firm offering a range of financial products and services. Motilal Oswal has built a reputation as the source for best stock trading company and this has taken a wealth of experience, knowledge and expertise, constantly working in tandem, over the years.
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